Industrial & Commercial Abatement Program (ICAP)

The 2017/18 ICAP Program has been extended to March 1, 2022.

This program provides abatements for property taxes for periods of up to 25 years. To be eligible, industrial and commercial buildings must be built, modernized, expanded, or otherwise physically improved. ICAP replaced the Industrial Commercial Exemption Program (ICIP) which ended in 2008. Previously approved ICIP benefits were not affected.

Applicants that successfully submitted their preliminary application within the required timeframe can use the combined Final ICIP/ICAP application below.

Requirements

Location

New Commercial Construction can be anywhere in the City except in some parts of Manhattan- The area south of 96th Street (including the south side 96th Street) and north of Murray, Frankfort, and Dover Streets does not qualify.

Commercial Renovations can be anywhere in the City except in some parts of Manhattan- Areas that do not qualify: between 59th Street and 96th Street (including north side of 59th street and south side of 96th street). Below 59th Street, specific commercial Renovation benefits are available and additional benefits are provided in:

Garment Center District.

Lower Manhattan in the area between Murray Street, Battery Place, South Street and West Street.

Additional benefits may be granted for new commercial construction or renovations in special areas of the City. Special areas of the city can be viewed with the links below:

You must spend at least 30% of the property's Taxable Assessed Value no later than four years from the date the building permit was first issued or from the start of construction if no permit is required.

Construction must be completed no later than five years from the date of issuance of the first building permit, or if no permit is required, from the start of construction.

Limitations on Eligibility

Utilities: As of May 18, 2011, benefits are available for electricity generating units defined as Peaking Units. Benefits are not available for any other utility property.

Retail: A property may be subject to different abatement schedules based on the percentage used for retail.

Residential: No more than 20% of the total rentable square footage can be dedicated to residential purposes. If so, apportionment is required.

How to Apply

File an ICAP Preliminary Application.

After you submit the ICAP Preliminary Application and fee, you must get a building permit or you will not receive benefits if you get your permit before filing a Preliminary Application. If no building permit is required for the construction, you must submit a notarized letter from the project's architect or engineer notifying the Department of Finance within thirty calendar days of the end of construction.

File all required annual Income and Expense Statements (RPIEs) for the property.

Report all current construction to the Department of Finance semi-annually. This is required during the entire construction or renovation period until completion.

Application Fees

The filing fee applies only to preliminary applications received on or after April 1, 2017. For preliminary application received prior to April 1, 2017, no fees are required for any part of the process (Final application and notice of completion)

Renewing Your Abatement Every Borough-Block-Lot with an ICIP abatement (may have more than one) is required to file a renewal each year in order to continue receiving the abatement. Complete your form(s) by January 5, 2017. Enter the User ID and password you received in our October letter.

Benefit SchedulesPlease follow the link below to find your approximate estimated benefit length and dollar amounts:ICAP Benefit ScheduleDeadlinesPreliminary ICAP applications will be accepted until March 1, 2022. The Final Application must be filed within one year from the building permit issuance date, or if no permit is required, within one year from the start date of construction. If you file the Final Application later than one year after the building permit was issued or construction started you will automatically be denied.